Netflix's weak outlook puts ETFs with heavy exposure under pressure

Netflix (NFLX) shares fell 6% in premarket trading Wednesday following a weaker-than-expected revenue outlook, putting ETFs with significant exposure to the stock in focus.

The streaming giant reported third-quarter revenue of $12.9B, in line with Wall Street estimates, but forecast fourth-quarter revenue of $13.4B, below analysts’ expectations.

Netflix projected revenue growth to slow to 11.5% in the fourth quarter, down from 17.6% in the final quarter of last year. The company attributed its sales shortfall to the advertising business, which is on pace to deliver $300M less than expected.

“I know we can do better,” Netflix co-chief executive officer Greg Peters said on a call with analysts Tuesday. “That better is our upside.”

Shares fell as much as 7% in trading after the results were announced and are already down nearly 27% year-to-date.

Netflix’s sharp selloff could have implications for a broad range of exchange-traded funds, with 623 ETFs holding exposure to the stock.

• T-Rex 2X Long NFLX Daily Target ETF (NFLU): 74.54% weighting
• Roundhill NFLX WeeklyPay ETF (NFLW): 19.99% weighting
• Direxion Daily NFLX Bull 2X ETF (NFXL): 19.33% weighting
• MicroSectors FANG+ 3X Leveraged ETN (FNGU): 9.18% weighting
• MicroSectors FANG+ Index 2X Leveraged ETNs (FNGO): 9.18% weighting
• MicroSectors FANG+ ETN (FNGS): 9.18% weighting
• Invesco Next Gen Media and Gaming ETF (GGME): 7.14% weighting
• REX FANG & Innovation Equity Premium Income ETF (FEPI): 6.76% weighting
• Truth Social American Icons ETF (TSIC): 6.06% weighting
• Corgi IP Licensing & Royalties ETF (PTNT): 5.58% weighting

Recommended For You

Register for free to keep reading.

Create a free account to get unlimited breaking news and alerts when your stocks move.